Health Insurance: Auto Injury Coverage

Personal injury protection (PIP) is an optional coverage that can be added to your auto insurance policy. It covers medical and hospital expenses, lost wages, and other related costs if you or your passengers are injured in an auto accident, regardless of who is at fault. PIP is required in some states as part of no-fault auto insurance laws, which restrict your ability to sue for car crash injuries. In other states, it is optional or unavailable. PIP has a minimum coverage amount and a per-person maximum coverage limit. It does not cover injuries caused by using recreational or off-road vehicles, motorcycles, or intentional injuries caused by the insured person. Regular health insurance may cover some expenses that PIP doesn't, so it's important to consider the extent of your health care coverage when deciding whether to add PIP to your auto insurance policy.

What is PIP?

Personal Injury Protection (PIP), also known as "no-fault insurance", is an optional coverage that can be added to your auto insurance policy to help pay for medical and hospital expenses, lost income, and funeral expenses related to injuries sustained in an automobile accident. PIP covers the policyholder, their household family members, and any passengers in the vehicle, regardless of who is at fault for the accident. It also covers pedestrians and non-family passengers involved in the accident. PIP is required in some states and optional in others.

The amount of coverage provided by PIP varies but generally includes medical and hospital expenses, rehabilitation costs, lost wages, replacement services for tasks the injured person can no longer perform (such as childcare or household chores), and funeral expenses. The specific benefits and limits of PIP depend on the state where it is offered and the insurance company providing the coverage.

In no-fault states, if a policyholder is injured in a car crash, their own policy will cover the cost of their medical care, regardless of who caused the accident. PIP coverage can be beneficial even if it is not required in your state, as it provides prompt payment for accident injuries and covers expenses that health insurance may not, such as lost wages and replacement services.

What does PIP cover?

Personal injury protection (PIP) is an optional coverage that can be added to your auto insurance policy. It covers medical and hospital expenses, lost income, and funeral expenses related to an accident, no matter who caused it. PIP is also known as "no-fault insurance" because it applies regardless of who is at fault in the accident.

• Medical and hospital expenses: PIP covers reasonable and necessary medical and hospital expenses for each person injured in an auto accident, up to a certain limit (typically $10,000). This includes costs for doctors, psychologists, surgery, X-rays, dental services, prosthetic devices, ambulance services, hospital stays, nursing care, and more.
• Lost wages: If you are unable to work due to your injuries, PIP provides income replacement coverage. It typically covers a portion of your lost wages, up to a certain limit.
• Rehabilitation costs: PIP can help cover the cost of rehabilitation or therapy needed as a result of your injuries.
• Replacement services: PIP can provide reimbursement for services you are unable to perform due to your injuries, such as household chores, child care, or other personal tasks.
• Funeral expenses: In the unfortunate event of a death resulting from an accident, PIP can provide coverage for funeral expenses.

It's important to note that PIP has coverage limits, and the specific benefits may vary depending on your insurance provider and the state you live in. Additionally, PIP does not cover damage to your vehicle or property damage. It is also important to understand the exclusions, such as injuries caused by using recreational vehicles or motorcycles, intentional injuries, or injuries sustained while committing a felony.

When is PIP required?

Personal Injury Protection (PIP) is required in some states as part of "no-fault auto insurance" laws that restrict your ability to sue for car crash injuries. If you live in a state where PIP is optional, you can choose to reject it in writing. However, it is generally a good coverage to have as it can help cover expenses such as your health insurance deductible, lost wages, and replacement services for tasks you cannot perform due to your injuries.

PIP is required in the following states:

• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky
• Maryland
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Utah
• Washington
• Puerto Rico

In these states, your insurance company is mandated by law to offer you PIP coverage. If you choose to reject it, you must do so in writing. If you don't sign a waiver, your auto insurer will add it to your policy and charge you for it.

When is PIP optional?

Personal Injury Protection (PIP) is an optional coverage that can be added to your auto insurance policy. The choice to buy PIP is yours, but by law, your insurance company must offer it to you. If you don't want PIP, you must reject it in writing. If you don't sign a waiver rejecting PIP coverage, your auto insurer will add it to your policy and charge you for it.

PIP is required in 15 states and Puerto Rico, but is optional in four states and the District of Columbia. In states where PIP is optional, it's generally good coverage to have. That's because PIP can help cover expenses, such as your health insurance deductible, lost wages, and replacement services for tasks you cannot perform due to your injuries, such as childcare or house cleaning.

• Arkansas
• Connecticut (called basic reparations coverage)
• Pennsylvania
• District of Columbia
• Texas
• Washington

How does PIP compare to other insurance?

Personal Injury Protection (PIP) is an optional coverage that can be added to your auto insurance policy to help pay for medical and hospital expenses, lost wages, and funeral expenses in the event of an auto accident, regardless of who is at fault. PIP is required in some states as part of "no-fault auto insurance" laws, which restrict your ability to sue for car crash injuries. In other states, it is optional or unavailable.

PIP is similar to medical payments coverage (MedPay) in that it covers medical expenses resulting from a vehicular accident. However, PIP offers additional benefits such as reimbursement for lost wages, funeral costs, and payments for services you can no longer perform, such as house cleaning or childcare. MedPay is typically offered as an optional coverage, while PIP may be required or optional depending on your state.

PIP is also different from liability insurance, which covers medical expenses and property damage for a third party if you are at fault in an accident. Liability insurance does not cover your own injuries or property damage. While PIP is only required in some states, liability insurance is mandatory in most states.

When deciding whether to purchase PIP, consider your health insurance coverage and your ability to cover lost wages in the event of an accident. PIP can help fill gaps in your health insurance coverage and provide additional benefits that health insurance may not offer.

Frequently asked questions